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To: kodiak_bull who wrote (85137)	1/23/2001 2:33:32 PM
From: rolatzi	Read Replies (2) \| Respond to of 95453

I don't have a problem with a Federal Guarantee on the bonds. If it comes down to that, they and everyone else will need all the help they can get. It is no one's intent to force CA into a recession but the richest state in the union doesn't need the rest of the country to subsidize their energy costs. rolatzi

To: kodiak_bull who wrote (85137)	1/23/2001 5:08:56 PM
From: Mark Adams	Respond to of 95453

Federal guarantees on debt and actions that the Fed Gov has no control over? Based on the poor performance thus far, I'd say federal guarantees should require the State ceeding control over the power producers and retailers. And that probably isn't a good solution. Yes, I couldn't agree with you more. My personal limitation on the "bail out" would be a federal credit enhancement or guarantee on State of California issued bonds. Only if those bonds went into default (not gonna happen) would the Fed be on the hook. Believe me, if we get to the point where California is in default, a little federal full faith and credit on those bonds is going to be a mosquito bite on the butt of a bull elephant compared to all the other problems we'd be feeling. We'd be in a world of hurt. At the theoretical cost of a federal guarantee (which should make the bonds more saleable and the interest rate lower) we could head off the repercussions of this state manufactured disaster. Kb